OTP Bank Jumps a Second Day, Leading BUX Gains on Moody’s

Feb. 20 (Bloomberg) -- OTP Bank Nyrt. advanced for a second
day, leading gains in the country’s stocks after Moody’s
Investors Service said Hungarian central bank moves last week to
boost lending were “credit positive” for lenders.

Hungary’s largest bank gained 1.5 percent to 4,004 forint
by the close in Budapest. The BUX gauge advanced 1.1 percent to
19,354.75. OTP has a “Ba2” long-term rating at Moody’s.

The Magyar Nemzeti Bank last week said it will offer a two-year collateralized credit facility to commercial banks, start a
universal mortgage bond-purchase plan and expand the range of
eligible collateral to increase lending.

“These initiatives are credit positive as they aim to
improve banks’ maturity and currency mismatches,” Simone Zampa,
a vice president and senior analyst at Moody’s, wrote in an e-mailed report today.

MSCI Emerging Market Index jumped as much as 0.6 percent
after China cut banks’ reserve requirements and ahead of a
meeting of euro-area finance ministers to discuss a Greek
bailout.

“We can witness a positive market reaction as further cuts
may be on the cards” in China’s reserve requirements, Akos
Kuti, a Budapest-based analyst at Equilor Befektetesi Zrt. in
Budapest, and colleagues wrote in an e-mailed report today.

Hungary accepted the majority of the European Commission’s
demands on three infringement procedures against the country
which have blocked talks for European Union and International
Monetary Fund assistance, Foreign Minister Janos Martonyi said
in a HirTV interview late yesterday.